This case illustrates the application of the principle for recognition of a financial asset or financial liability.
Facts Entity A is evaluating whether each of the next items should be recognized as a financial asset or financial liability under IAS 39:
(a) An unconditional receivable
(b) A forward contract to purchase a specified bond at a specified price at a specified date in the future
(c) A planned purchase of a specified bond at a specified date in the future
(d) A firm commitment to purchase a specified quantity of gold at a specified price at a specified date in the future. The contract cannot be net settled.
(e) A firm commitment to purchase a machine that is designated as a hedged item in a fair value hedge of the associated foreign currency risk
Required
Help Entity A by indicating whether each of the above items should be recognized as an asset or liability under IAS 39.